RERA is Home Buyer's Best Friend...!

The
year 2017 has not exactly lived up to the expectations of the residential
property sector. RERA has been deployed, but as of today, only 18 states and 7
Union territories have notified RERA, while 10 states are yet to notify it.
While RERA has certainly already made its expected effects felt in states like
Maharashtra - which includes very important markets like Mumbai and Pune - it
has not yet extended its full influence over parts of the country where RERA it
is probably needed the most.

Though
Haryana and UP have notified RERA, they are yet to set up the portal via which
developers can upload their applications for registration of their projects.
The web portal is also critical for buyers, as this is where they can check the
details of projects. Also, these two states have come under heavy criticism for
diluting the Centre’s RERA norms.

GST,
while technically a good move for all industries, has brought more confusion
than benefits to the residential property sector so far, with GST exemption currently
being used as a marketing gimmick without being fully understood by buyers. On
the positive side, home loan rates have sunk to a 10-year low and property
prices in most cities have also been reduced to the lowest point that
developers cannot afford to bring them without actually dooming their
businesses.

As
we look at festive season 2017 - the period around which a huge number of
Indians hope to time important investment decisions - some advice to aspiring
home buyers who have delayed their plans for long and wish to delay no further
is definitely in order.

Let’s
start with some good news...!

If you're looking to buy a home for
self-occupation, now is probably the best time you could have hoped for. There
is a massive supply of ready-to-move-in property options available at rates
which would have been considered impossible 4-5 years ago.

Even if your budget
is modest, you are no longer restricted to under-construction projects which
may take years to be completed. You can literally buy and move in now.

The
residential market now primarily favours end-users....

If you're an investor who
is hoping for some quick profits, look elsewhere because Indian residential
property is definitely not what you're looking for.

However, if you are a
patient long-term investor who understands property cycles and market readings,
your star currently shines as brightly as the end-user's.

Four or five
years from now, your investment - as long as you have picked the right location
and project - will have grown sizably in value.

RERA
is your friend...!

It may still be struggling
for a proper foothold in some parts of the country - but it is here to protect
you. If you live in a state where it has been fully deployed and prefer to buy
in an under-construction project, refer to the RERA website, look for projects
by reputed developers who have committed to reasonable completion timelines and
buy with confidence - your interests are genuinely protected now. Ready-to-move
projects are also covered, and you're therefore assured that any flaws or
deficiencies in a ready flat must and will be corrected in a specified period.

If
you live in a state where RERA has not been deployed yet(or where the laws have
been heavily diluted), focus only on ready-to-move-in options unless the developer
is of impeccable market repute.

Some names are synonymous with
reliability since they bring with them the assurance of high
capitalization and a strong reputation for timely delivery, assured
construction quality, good amenities and sticking to the promised development
plans.

You know who these developers are. Play it safe and patronize their
projects, and RERA becomes a factor that you need not worry about too much.

Do not
give in to impulse..!

Remember, this is a buyer's market and it is you who is
in the driver's seat. This means that you can study as many projects as you
need to before making a purchase decision.

If you want to buy your home in this
festive season and therefore do not wish to launch a time-consuming property
search, enlist the services of a reputed property consultancy. You will cut
down not only on the search time but also on the price and paperwork.

Remember
that a credible property consultancy/consultant:

Does NOT
charge you brokerage (the developer of the project you select is the only party who
pays brokerage)

Is duly
registered under RERA, has a registration number to prove it and can explain to you all the
nuances of this important Act

Offers you
a wide spread of options based on your budget, choice of location and
other preferences, and does NOT try to hard-sell you anything

Negotiates
with the developer on your behalf and also helps you with obtaining a home loan

Is with
you from the start to finish of your home hunt – literally from the
initial search to when you move in – and even after that

Understand
your current and future finances. If you are currently at the very outset of
your career, it may make more sense to rent for a couple of years rather than
buy at this stage, even if you have sufficient reason to be confident of your
growth graph. Property prices are unlikely to grow significantly over the next
12-18 months, and if your salary grows in this period, you will still be able
to buy a good home two years from now.

Evaluate
festive offers and freebies on their intrinsic value to you, rather than their
flashiness. You may not really need a gold coin, probably already own a decent
car, and a family holiday abroad may not make much sense if you would rather
stay put and focus on your career for now. However, a free parking space,
waived stamp duty and registration fees and maintenance-free periods do add to
your savings, and therefore to the value of the deal. Air conditioners, modular
kitchens and furnishing are also expenses you may incur on the property sooner
or later, so getting them free now add real value, as well.

Finally, don't be overly focused on
the cost of the property. If you have the base budget in place and are firm on
wanting to buy a home now, you can leverage it via a home loan to buy into a
good location, in a project with amenities which offers you and your family a
decent lifestyle for the next few years.

Godspeed
with your home hunt - may this festive season be the one that finally fulfils
your family’s dream of homeownership.

RERA is Home Buyer's Best Friend...!
Reviewed by S. Chitra
on
October 21, 2017
Rating: 5 RERA is Home Buyer's Best Friend ...! A 2017 Festive Season Primer for Homebuyers by Mr. Anuj Puri, Anarock Property Consulta...